It is not a precise tool to calculate the value of a currency, but it allows us to have a general idea about it. We are talking about the Big Mac Index created by The Economist magazine 37 years ago. Taking advantage of the fact that it is sold in most of the world, the index takes as a basis the price of this hamburger in the United States and compares it with its price in other countries, which gives us an idea of whether a currency is overvalued or undervalued against the dollar. Do you know which country has its currency more overvalued in June this year according to the Big Mac Index?

ANSWER

Uruguay. Adjusted for each country's GDP, the Uruguayan peso tops the list of the most expensive currencies, with an overvaluation of 46.3%. There are several reasons to explain this relative strength of the Uruguayan peso: the export boom - the country posted an all-time export record in 2022, the high interest rate maintained by the central bank and the country's political and financial stability, which attracts foreign investment. However, Uruguay is not the only Latin American country with overvalued currencies. Colombia, Mexico and even Argentina (at the official exchange rate) are also on the list.